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Taxation MCQ Questions & Answers

Taxation MCQs : This section focuses on the "Taxation". These Multiple Choice Questions (MCQs) should be practiced to improve the Taxation skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

of Income Tax Act is related to residential status

A. Section 6
B. section-5
C. section 8
D. section 9

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Question 2

Micro economics deals with

A. Inflation in the country
B. The economic behavior of an individual unit
C. The per capita income
D. The problems of poverty and unemployment in the country

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Question 3

An Company is always resident in india

A. industrial
B. individual
C. indian
D. investment

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Question 4

R Ltd. Is an Indian company whose place of effective management is outside India. R Ltd., shall be:

A. resident in India
B. non-resident in India
C. not ordinarily resident in India
D. resident and ordinarily resident only

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Question 5

Previous year means the financial year immediately preceding the                          

A. Accounting year
B. Assesment year
C. non of the above
D. both

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Question 6

Residential Status of an individual depends on the stay of assesses in india during the

A. calender year
B. accounting year
C. asseseement year
D. previous year

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Question 7

The Income Tax Act, 1961 came into force on the ________

A. 01/04/1961
B. 01/01/1961
C. 01/04/1962
D. 01/01/1962

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Question 8

____________________________ is chargeable u/s 45

A. capital gains
B. profit and gains
C. dividend
D. voluntary contribution

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Question 9

which of the following are the basic condition to become resident of india

A. He must be in India for 182 days or more in relevent previous year
B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in
C. both a and b
D. none of the above

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Question 10

Rates of Income tax are fixed ________

A. By an Ordinance
B. Under the Income Tax Act
C. By the Finance Act

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Question 11

A person by whom any tax is payable under income tax act 1961 is called as

A. individual
B. tax receiver
C. assessee
D. none of the above

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Question 12

The territory of India is referred to in Article ____________ of the Constitution.

A. 1
B. 2
C. 3
D. 4

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Question 13

The Constitution of india empowers ____________________________________ to levy tax on income

A. state government
B. central government
C. parliament
D. finance minister

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Question 14

Income tax act extends to

A. whole of india
B. whole of india except jammu & kashmir
C. india & sri lanka
D. none of these

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Question 15

Residential has nothing to do with

A. constitution
B. citizenship
C. censorship
D. change

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Question 16

Parliament has the power to levy tax on incomes other than

A. Exempt Incomes
B. Income of poor people
C. Agricultural Income
D. All incomes are taxable

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Question 17

Capital LosseCan be carry forward up to next             assessment years from the assessment year in which the loss was incurred

A. 8
B. 4
C. 2
D. 5

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Question 18

A firm is regarded as a unit of assessment as per ______________________________

A. income tax act
B. partnership act
C. companies act
D. finance act

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Question 19

As per section 2(31) of the Act, the term “Person” does not include ______

A. An Individual
B. A Firm
C. A company
D. A minor

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Question 20

Circulars issued by CBDT are binding on

A. Assessee
B. Income TaxAuthority
C. Both of above
D. None of the above

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Question 21

An individual is said to be resident in India if

A. He is a citizen of India
B. He is in India atleast for a period of 182 days or more in the previous year
C. He is in India for a period of 30 days or more during the previous year and for150 or more days during 4 previous years immediately preceding the concerned previous year
D. He got married with an Indian citizen

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Question 22

The term “Income” does not include______

A. Profits and gains
B. Dividends
C. Voluntary Contributions
D. Remittance of savings from U.K

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Question 23

.A is entitled to children education allowance @ Rs. 80 p.m. per child for 3 children amounting Rs. 240 p.m. It will be exempt to the extent of :

A. 200
B. 260
C. 160
D. 240

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Question 24

The income tax act extends to __________________________________________ of india

A. states
B. union territories
C. citizens
D. whole

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Question 25

profit or income of that particular year.

A. set off
B. carry forward
C. none of above
D. both of above

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Question 26

Arear on salary are taxable on             

A. Receipt
B. due
C. Receipt or due whichever is earlier
D. none of the above

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Question 27

The HUF is said to be resident in India if                    

A. The control and management of its affairs is wholly or partly situated in India
B. The control and management of its affairs is partially situated out of India
C. The control and management of its affairs is wholly or partly in out of India
D. None of the above

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Question 28

is a retirement benefit given by the employer to the employee in consideration of past services.

A. Gratuity
B. Dearness allowance
C. Lunch allowance
D. House Rent allowance

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Question 29

Income Tax is imposed by ________

A. State Government
B. Central Government
C. Both of the above
D. Constitution of India

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Question 30

The Financial year in which the income is earned is called as the

A. assessment year
B. present year
C. previous year
D. current year

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Question 31

means fixed quantum of money given regularly in addition to salary to meet particular requirement

A. Allowance
B. Perquisites
C. pension
D. none of the above

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Question 32

Shivaji University is assessable under the income tax act as

A. a individual
B. an artificial juridical person
C. a local authority
D. none of these

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